Bitcoin rallies to $81,000 as short positions unwind and dollar weakens
Bitcoin surged over 5% to $81,000 following heavy short liquidations, driven by a weakening US Dollar Index amid suspected Bank of Japan intervention.
Bitcoin climbed to $81,000 on Thursday, a move that marked its steepest rise in recent days. The asset gained approximately 5% within US trading hours as traders forced to close losing short positions added fuel to the rally. Market data indicated significant short-side liquidations occurred when Bitcoin pushed through resistance near $80,000. This pressure on leveraged sellers lifted the cryptocurrency from a consolidation zone around $77,000-$78,000 previously seen on Thursday morning.
The advance came as the US Dollar Index (DXY) fell to 99, supported by the strengthening of the Japanese yen to roughly 155.4 USD per JPY against the backdrop of suspected Bank of Japan intervention. The drop in currency values has historically been positive for digital assets.
CoinGlass reported elevated forced closures during this period. While early reports suggested about $140 million in crypto shorts liquidated within an hour, that specific figure could not be independently confirmed from a single authoritative real-time source. Bitcoin remains near levels traders view as important technical barriers between $81,000 and $83,000.
Analysts noted that while the August rally stalled below supply zones at $83,000 and $86,000, a sustained break above the current resistance could mark a stronger departure from consolidation. The global crypto market capitalization increased by 0.59% to $2.63 trillion.
